Gift of Immovable Property which is not a Capital Asset, i.e., rural agricultural land

		Gift of Immovable Property which is not a Capital Asset, i.e., rural agricultural land As per the meaning of the term "property" given in Clause (d) of Explanation to section 56(2)(vii), immovable property means any land, or building, or both. In the aforesaid Explanation while defining the term "property" the word 'capital asset' has also been used. On this basis, it is being argued that, if any property is not in the nature of capital asset as defined in section 2(14), the same is not covered under the definition of property and therefore, provisions of section 56(2)(x) are not applicable. Example of such cases are agriculture land, stock-in-trade, assets of personal effects etc.
		The issue had come up before ITAT Jaipur Bench in the case of 'ITO v. Trilok Chand Sain'14 in the context of agricultural land. It has been held by the Hon'ble Bench that definition of term capital asset in section 2(14) of the Act is not relevant for the purpose of section 56(2)(vii) of the Act.